RIVERWOODS, Ill.--(BUSINESS WIRE)--
In conjunction with the Federal Reserve’s release of the Dodd-Frank Act stress test (DFAST) results, Discover Financial Services (DFS) today announced the following proposed capital actions it included as part of the capital plan the company submitted to the Federal Reserve under the 2014 Comprehensive Capital Analysis and Review (CCAR). The proposed capital actions include an increase in the company’s next quarterly dividend from $0.20 to $0.24 per share of common stock and share repurchases of up to $1.6 billion during the four quarters ending March 31, 2015.
The proposed capital actions in Discover’s capital plan are subject to the receipt of a non-objection from the Federal Reserve on March 26,2014. In addition, dividends are subject to approval of our board of directors and the timing and amount of share repurchases will be subject to our capital plan, market conditions and other factors, including legal and regulatory restrictions and required approvals.
Discover Financial Services (DFS) is a direct banking and payment services company with one of the most recognized brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company issues the Discover card, America's cash rewards pioneer, and offers home loans, private student loans, personal loans, home equity loans, checking and savings accounts, certificates of deposit and money market accounts through its direct banking business. It operates the Discover Network, with millions of merchant and cash access locations; PULSE, one of the nation's leading ATM/debit networks; and Diners Club International, a global payments network with acceptance in more than 185 countries and territories. For more information, visit www.discover.com/company.
This press release contains forward-looking statements. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made, which reflect management’s estimates, projections, expectations or beliefs at that time, and which are subject to significant risks and uncertainties that may cause actual results to differ materially. The amount and timing of any future dividends and share repurchases are subject to the discretion of the company’s board of directors and will depend upon the company’s results of operations, financial condition, cash requirements, future prospects, market conditions, capital requirements, applicable law and regulations (including federal securities laws and federal banking regulations) and other factors, and may be subject to regulatory approval or conditions. Additional factors impacting dividends and share repurchases can be found in "Business - Supervision and Regulation", “Risk Factors” and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's annual report on Form 10-K for the year ended December 31. 2013, which is available at the SEC's internet site (www.sec.gov).
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